



/f5 



L 182 

.E4 

1885 

Copy 1 , 



Comptroller's Special Report 



UPON THE 



SCHOOL FUN D 



AND UPON 



Taxation and Revenue. 






>1* 



e 



*»^'^o 



V 






:j[A\ax*^ek. 



SPECIAL REPORT 



SCHOOL FUND 



AND UPON 



Taxation and Revenue. 



Transmitted to the Legislature February 25TH, 1885. 



STATE OF NEW YORK: 

Comptkoller's Office, \ 

Albany, February 25, 1885. ) 

To the Ho7iorable the Legislature of the State of New York : 

In the annual report, submitted in January from this Depart- 
ment, it was stated that the school fund would receive special con- 
sideration in a later communication. In the same report the 
statement was made that it would be possible within the next eight 
years to entirely reorganize the financial system of the State, 
greatly to the advantage of those who bear its burdens. 

Existing conditions of trade and industry call our attention 
sharply to the wisdom of beginning such a work. The country's 
sources of wealth remain unimpaired, it is true, but the mactiinery 
and methods of distribution have never seemed to operate more 
unsatisfactorily than for some three years past. Want and priva- 
tion have become familiar to many, whose complaints are the more 
to be regarded, because long deferred. Willing labor remains 
often unemployed. Agricultural energy, except in a few favorea 
instances, is more poorly remunerated and less able to bear its share 
of governmental burden than formerly. Even the apparent wealth 
heaped up in the great money centre is delusive, its accumulation 
being but a morbid congestion due to sluggish circulation. 

Mindful of these things, and in obedience to that provision of 
law which makes it the Comptroller's duty " to suggest plans for 



2 

the improvement and management of the public revenues," I 
submit to your Honorable Body the first suggestion towards the 
adoption of new financial systems under which the necessary cost 
of government may be much reduced, and direct taxation may, 
perhaps wholly, certainly in great part, disappear. 

The school fund had its origin in chapter LXYI of the Laws of 
1805, passed in response to a recommendation contained in a 
special message of Gov. Morgan Lewis. The act provided that 
" the net proceeds of 500,000 acres of the vacant and unappro- 
priated lands of the people of this State, which shall be first sold 
by the Surveyor General, shall be and hereby are appropriated as a 
permanent fund for the support of common schools." No distribu- 
tion was to be made until the annual revenues of the fund 
amounted to $50,000. 

At the time of the passage of this law, the funds ot the State, 
meaning by this term certain stocks, bonds, mortgages and loans, 
produced more than sufiicient revenue to meet the ordinary 
expenses of government. The erection of this special fund was a 
modification, therefore, of previous usage rather than a departure 
from it or innovation upon it. During the years immediately suc- 
ceeding its foundation, the school fund accumulated rapidly. Sales 
of land were frequent. By enactments in 1819, 1827 and 1832 
other sources of revenue were made tributary to it, certain posses- 
sions of the general fund were made part of the school fund, and 
its functions as a factor in State financial procedure were enlarged 
by making it the Comptroller's duty to invest school moneys in 
tlie purchase of securities of the general fund whenever the latter 
did not contain sufficient money for purposes of government. 

These statutes, with other incidents in the State's financial his- 
tory, chief among them being the forced resort, in 1842, to direct 
taxation as the only adequate means of raising revenues, mark the 
collapse of the fund system as applied to general purposes. So 
complete was the collapse that a productive capital of $4,396,943.97, 
possessed in 1814 by the general fund, was entirel}' consumed and 
gave way to a general fund debt of $5,885,549.24 on September 
30, 1845. But in the meantime the school fund had thriven, 
gradually absorbing the best investments of the general fund. 
Its history in detail is shown in tables herewith submitted. Table 
" A " shows the amount of its capital and revenue for each year from 



1805 to 1845. Table " B " shows its revenue and capital for each 
year from and including 1846 to the present day. These two equal 
periods are separated for the reason that by comparison they show 
that this fund for the accomplishment of present purposes is, and 
for years has been a mistake. The tables just referred to contain 
in their third column a statement of the amounts paid out of the 
State Treasury for common school purposes for each year since the 
creation of the fund. A comparison of these amounts with the 
revenue of the fund is singularly instructive in enabling us to 
properly appreciate the degree to which the State has abandoned 
reliance upon the fund, although still maintaining formal depend- 
ence upon it. 

From this table it appears that during the first forty years of its 
existence the fund's revenues were in all $3,081,719.80, while the 
total payments from the State Treasury for school purposes were 
$2,780,560. 

Even in those years the common school system far outgrew the 
fund. That system begins its continuous and organized lite in acts 
of 1812 and 1814, Previous attempts, founded upon Laws of 
1795 and 1801, had been abandoned. 

The act of 1812 provided that the interest of the school fund 
should be divided among the different counties and towns, accord- 
ing to population, and that each town should raise by tax, annually, 
a sum of money equal to its receipts from the fund. The act of 
1814 recast that of 1812, transferred the tax-levying power from 
the towns to the counties, and made the levy obligatory. The gross 
amount of moneys received from the State and thus raised by the 
towns was to be appropriated to the payment of teachers' wages. 

In the following year there was made the first distribution of 
the income of the fund. Such distribution, together with local 
taxation, pursuant to the act of 1814, continued annually until 
1851. But during this period the schools drew largely from other 
sources, prominent among these being the rate-bill, which was the 
district charge upon each parent or guardian, based upon actual 
attendance of children, and imposed for the purpose of paying 
whatever balance was due teachers, after the proceeds of the fund 
and the equivalent local tax were exhausted. 

Your Honorable Body does not need to be reminded of the heated 
controversy and the years of agitation and excitement which pre- 



ceded the adoption of the " Act in relation to common schools," 
of 1851. This law provided for an annual State tax of $800,000, 
based upon property one-third of whose avails, plus one-third of 
the proceeds of the Common School and United States Deposit 
Funds, should be equally distributed among the several districts, the 
i-esidue to be apportioned according to the number of children of 
school age in each district, the rate-bill to provide, as before, for 
any necessary balance. 

In 1856 a tax of three-fourths of a mill on each dollar of the 
State's valuation was substituted for the $800,000 tax of 1851. In 
1867 the tax was increased to one and one-quarter mills, and district 
rate-bills were abolished. From 1814 to 1867 they had produced 
$20,627,426.66, a yearly average of $381,989.38. Since 1851, 
when the State committed itself to the policy of levying a yearly 
State tax for schools, the amount of such tax has grown rapidly. 
The amount paid from the treasury in each year (shown in detail in 
column three of table B) was $800,000 until 1857 ; it then rose to 
about $1,100,000, at which point it remained for ten years; leaped 
in 1868 to $2,000,000, and in 1877 reached the proportions since 
maintained of nearly or quite $3,000,000 — the levy for this year 
being $3,180,393.90. Probably many citizens do not suspect that 
the gross amount paid from the State Treasury for school purposes 
for the forty years from 1805-1845 is less than the amount now 
paid in each year for the same purposes. At present, State school 
moneys, meaning by this term, the proceeds of the State tax," the 
incomes of the Common School Fund and of the United States 
Deposit Fund are divided and apportioned pursuant to chapter 555 
of the Laws of 1864, as amended by chapter 374 of the Laws of 1876. 
After certain specific minor deductions affecting not more than one- 
sixteenth of said moneys (for salaries of commissioners, of local super- 
intendents, or clerks; for certain cities; for libraries; for a con- 
tingent fund; and for Indian schools), the remainder of said State 
school moneys being titteen-sixteenths thereof, is divided into 
two parts, one part, being one-third of said remainder, which is 
apportioned equally among school districts and cities, the unit of 
distribution, or minimum distributive share of each district being 
known as the district quota, title to a quota being based upon the 
actual service of a qualified teacher for at least twenty-eight weeks 
of five days each, including holidays, during the last preceding 



sciiool 3'ear ; the other part of said remainder, beinsj two-thirds 
thereof, is apportioned anions the counties of the State according 
to tlieir population as shown by the last preceding State or United 
States census, but in counties containing cities having special 
school acts, apportionment is made directly to the city of its share, 
the residue of the county's share being apportioned to the residue 
of the county. The moneys to be thus distributed during the cur- 
rent year aggregate $3,084,600, of which total the school fund 
produces $160,000. By far the greater part of the moneys is used 
to ]iay wages of teachers, of whom 21,411 share in the distribution- 
The people, therefore, are locking up four and one-fourth millions 
of dollars to contribute less than eight dollars per year to each 
teacher. 

While the school system has thus expanded, the principal of the 
school fund has stood still, and in very recent years its revenue has 
declined. None of its former sources of replenishment are now 
operative. By a provision of the Constitution of 1846 its capital 
gains $25,000 per year from the revenue of the United States 
Deposit Fund, a slow process of accretion that in forty years will 
add but $1,000,000 to its capital and $30,000 to its revenue. No 
other means of enlargement except the extremely unwise one ot 
direct taxation exists. That method has to some extent been 
resorted to. In 1882, $500,000 was transferred from the treasury 
to the capital of the fund. During the past eight years the fund 
has in five several years failed to earn sufficient income for the 
performance of its present narrow duties, thus compelling transfers 
from the Treasury to make up its deficiencies amounting to over 
$100,000. On October 1, 1884, its revenue was si\\\ deficient 
$60,177.01. 

The secondary purpose formerly served by the fund — that of 
Advancing moneys for governmental support — is now valueless. 
The State can, if necessary, borrow temporarily at three per cent 
from many sources, while the concentrated responsibility for finan- 
<;ial legislation, fastened upon the Executive by the constitutional 
amendments of 1875, has for years precluded such a necessity. 
Moreover, the school fund is and should be so invested as to have 
no casual moneys to lend. 

Closelj akin to the arguments just urged and hardly second in 
importance, an objection to maintaining such a trust fund arises 



6 

from its unfitness to fulfill the duties of a productive instrument at 
the present day. A fund earns revenue in but one way — by 
investment. Securities proper for such moneys as we are consider- 
ing pay a rate of interest which diminishes as wealth increases and 
the community becomes more and more highly organized. The 
stability insured by the earnest devotion of our citizens to peaceful 
pursuits, their varied energy, reflected in an industrial system of 
striking complexity, and their strict enforcement of rectitude in 
commercial dealings, sustained and perpetuated as these forces are, 
by advantages of situation and natural endowment, have in our 
own State accelerated and intensified the progress and operation of 
the economic law just adverted to. The bonds of our cities, as 
well as of the State itself", are readily disposed of at a lower rate of 
interest than was ever contemplated by those who founded or 
fostered this fund. The moneys of our active and ingenious fellow 
citizens, from whom taxes are drawn, ought not to be employed 
so unremuneratively as by hoarding them for investment at 
three or two and one-half per cent. The fund, as part of a 
present financial system, is doubly objectionable, in that its method 
of producing income is inadequate and antiquated, while at the 
same time its substance — the property of our taxpayers — is 
virtually subtracted from a multitude of small fortunes belonging 
to a frugal and industrious people. Tiiere is no worthier subject of 
legislative wisdom and solicitude than the protection of these 
myriad savings from continuous loss, minute or indirect though it 
may be. That such loss ensues from continuous investment and 
reinvestment of the money of an active people at declining rates 
of interest, is self-evident. In a few years the entire fund will 
necessarily be invested at not more, perhaps at less, than three per 
cent, producing barely $125,000, annually, on an investment of 
over $4,000,000. Tiie $25,000 which is now carried yearly, from 
the revenue of the United States Deposit Fund to the principal of 
the Common School Fund, under a new system, would annually be 
applied directly to school purposes, thus obviating taxation to that 
extent. The present investments of the fund, if turned into cash 
in 1887, or so soon thereafter as good judgment might dictate^ 
would realize over $4,250,000, being an amount equal to the 
revenue of the fund for thirtj'-liiree years. This amount, applied 
in reduction of taxation, would be beneficially felt until the State 



had entered upon a period of new financial methods and conditions. 
The conversion ot the fund into cash, therefore, would set free, for 
purposes of reduction of taxation, a perpetual annual contribution 
of $25,000 from the revenue of the United States Deposit Fund, 
as well as the entire principal of tlie Common School Fund. 

Clearer light is thrown upon the considerations just advanced 
by a study of the present composition and recent Iiistory of the fund. 

On January 1, 18S5, the fund was constituted as follows : 



SECURITIES. 



Manhattan Company stock 

Dist. of Columbia 3 (J5-100 bds. 
Village of Middletown 4 per 

cent of 1886 

United States 4 per cent of 1907. 
Albany Co. ^X bds., 1901 to 1903 
Albany Co. and City 4 per cent, 

1899, 1907, 1906, 1908 and 1910. 
United States 4 per cent of 1907 
New York City 6 per cent of 

1901 and 190a 

New York City 5 per ct. of 1908. 
JJist. of Columbia 3 65-100 bds. 



1827 
1880 

1881 
1882 
1882 

1882 
1883 

1883 
1883 
1883 



Bonds for lands 

Bonds for loans 

Mortgages for loans under act of 1840, 

in charge of Com. U. S. Dep. Fund. 

Money in the Treasury 



Par value. 



S50, 000 00 
100, 000 00 

53, 000 00 

1, 563, 000 00 

110,000 00 

137, 000 00 
710, 000 00 

165, 000 00 
500,000 00 
250, 000 00 



*$3, 638, 000 00 

$11.3,872 97 
16,018 07 

30, 470 00 
55, 040 50 

t$3,853,401 54 



Cost, lees 
accrued 
interest. 



$50, 000 00 
99, 500 00 

55, 650 00 

1, 825.611 25 

110,000 00 

147, 676 25 
850, 003 13 

215, 053 12 
625, 625 00 
273, 750 00 



14,252, 868 75 



Present 
market 
value. 



$72, 500 
113,000 

53,000 

1,906. 86 J 

110,00(J 

148,280 
866,200 

214,500 
600,000 
282, 500 



$4, 366, 840 



Rate of interest 
on money in- 
vested. 



8 per cent. 
S% per cent. 

2 9-10 per cent. 

3 per cent 
3J^ per cent. 

3}4 per cent. 
2% per cent. 

3 7-10 per cent. 
S}4 per cent. 
3J4 per cent. 



The first of tlie above items was acquired in 1827 by purchase 
from the general fund, which had acquired it by original subscrip- 
tion at par, in 1809. So old and profitable an investment is not 
often known. But by far the greater portion of the fund, to wit: 
Securities of $3,588,000, par value, have been purchased during 
the past five years. None of them will net over three and seven- 
tenths per cent, while the rate realized upon the $4,202,868, which 
is their aggregate cost, is but three and one-fitth per cent. Over three 
and one-quarter millions of dollars of the money lately invested 
draws less than four per cent. Wo have already seen that, 
in 1882, the capital of the fund was swollen by a transfer 
to it of $500,000 from the Treasury, and that within the past 
three years such transfers, on account of both capital and rev- 

* Total securities. t Total capital. 



8 

en lie, have amounted to $600,000. The foregoing statement shows 
a further drain from the moneys raised by taxation. The securi- 
ties purchased since 1880, in every instance but one, were bought 
at a premium. The difference between their par value and actual 
cost is $615,368.75, representing premiums and commissions. Of 
this siTm $567,226.04 was drawn from the proceeds of popular tax- 
ation, and must be added to tlie $600,000 already set forth. The 
total, $1,167,226.04, is the sum which the people without knowing 
it, have during the past three years, invested at about three and one- 
fifth per cent for the sake of augmenting a fund which produces less 
than one-twentieth of the proceeds of the direct school tax. Taking 
this rate of interest as a basis of estimate, the fund siiould contain 
at least $100,000,000 to enable it to play the part once contem- 
plated for it. 

There is exhibited in each department of State finance a succes- 
sion of methods corresponding to progressive phases of popular 
growth and development. In its application to general purposes, 
the method of establishing productive funds, although it seemed to 
afford relief from taxation, in reality was the forerunner of an era 
of indebtedness and embarrassment for which the only remedy was 
continuous and sometimes heavy taxation. Its failure in its appli- 
cation to the canals was of later date, but came not less inevitably. 
To-day there is no sucli thing as a productive Canal Fund, and the full 
cost of canal maintenance is added to the general burden of taxation. 
In school finances the fund survives, but only as a relic. At most it 
can but feebly and needlessly supplement the direct school tax, 
now in the thirty-fit th year of its operation, and yielding upwards 
of $3,000,000 annually. 

This succession ot financial methods brings us to the verge of a 
new era in financial legislation. It was statesmanlike for our 
ancestors four score years ago, when valuable State lands were 
abundant, to devote their proceeds to a fund. At the present day 
true financial wisdom will find special means of raising revenue as 
tlie progressiveness of the people takes on special forms or dis- 
closes new sources of wealth. The first step — and a significant 
one — in tlie direction just i?idicated was the adoption of the Cor- 
poration Tax Law. That law recognizes that it is wise and just to 
exact governmental revenue from organizations which in the 
normal course of business are easily able to re-exact their contribu- 



9 

tions from the multitiido witli whom they deal. It is not the 
purpose of the present communication to suggest a companion to 
the corporation fax, but to submit a proposition wln'cli will prepare 
the way. Such a proposition has already been outlined. 

It is that so soon after January 1, 1887, as good judgment may 
dictate, the school fund shall be converted inro cash, to be there- 
after applied in reduction of taxation. 

It need hardly be said tliat the submission of such a proposition 
carries with it no Jack of high regard for the rare conscientiousness 
and comprehensive foresight of those who founded and developed 
our common school system, of which the I'und has formed a part, 
or for the system itself. But admiration for the wisdom and self- 
denial of our predecessors need not blind us to changed conditions 
and necessities. 

Neither would it be just to forget the present in honoring the 
past. Whoever studies the educational system of the State cannot 
but be astounded at the enormous burdens which our fellow 
citizens bear year after year for its maintenance. The three and 
one-half millions which will this year be distributed from the State 
Treasury for educational purposes form less than one-third of the 
entire popular burden. The total school expenditures during the 
past year were $11,834,911.52. For the current year they will be 
as much. Nor have such contributions fallen below $10,000,000 
in any year since 1871. Encouragement, even if needed, can no 
longer be provided in the ancient manner. 

The submission of this proposi tion docs not contemplate the 
abandonment by the State ot any present duty. Whatever inter- 
ests or individuals are in any way dependent upon the fund can 
and should be otherwise cared for. 

To properly apprehend the proposition it should be considered 
as part of a scheme bearing upon the State's financial policy during 
the eight fiscal years next ensuing. 

During the eight fiscal years ending September 30, 1893, the 
entire State debt will be paid ofi, the last installment thereof fall- 
ing due on October 1, 1893. This period, therefore, is one of 
transition to more hopeful conditions of State finance, and its begin- 
ning is a natural point of retrospect and comparison. 

Before contemplating tlie possibilities of the future period, we 
should note certain features of the corresponding period just closing. 



10 

1. The amounts drawn from the people by direct taxation for canals, 
schools and general purposes during the eight fiscal years ending 
September 30, 1885 (shown in detail in table C), equal $63,541,028.61, 
the average annual levy being $7,942,628.58. The sum of the 
amounts raised under the Corporation Tax Law (shown in detail 
in table D) is $7,812,328.52. Such receipts during the next eight 
years will be at least $12,800,000, or $5,000,000 more than those of 
the past eight years. 

2. During the past eight years there have been appropriations 
for the construction of the new Capitol (table E), aggregating 
$8,600,000. 

3. During the same period the appropriations for the sinking 
fund (Table F) have been $8,187,219.46. 

4. There is now a surplus of $1,000,000 in cash in the Treasury, 
which can better be remitted to the pockets of the people by 
deducting one-half that sum from the taxes of each of the two next 
ensuing fiscal years. During the perilous weeks of last spring and 
summer there was no time when the deposits of the State were less 
than $5,000,000 in amount. At times they were far in excess of 
this sum. Any unnecessary burden, therefore, is extremely unde- 
sirable. 

We should further note : 

a. That not more than $3,000,000 will be needed hereafter to 
complete the new Capitol. 

h. That the appropriations wliich will be needed for the sinking 
fund during the eight remaining fiscal years which precede the 
extinguishment of the debt (Table G) will fall $3,000,000 below 
those of the past eight years. 

It will be seen, therefore, that for the eight next ensuing fiscal 
years, as compared with the last preceding, there is a possibility ot 
greatly reducing taxation : 

First. Because there is cash in the Treasury which 
can be safely and properly applied to tliat purpose 
during the next two fiscal years to the amount of at 
least $1,000,000 

Second. Because the appropriations for the construc- 
tion of the New Capitol should fall below those of 
the last eight years by 5, 600, 000 



11 

Third. Because the appropriations for the sinking 
fund will fall below those of the last eight years by $3,000,000 

Fourth. Because it is possible, by converting the 
Common School Fund into cash, to apply to the 
purpose of such reduction the further sum of 4, 250, 000 

fifth. Because the amount produced by the Corpora- 
tion Tax Law will exceed the amount produced 
during the eight years now ending by at least 5,000, OOO 

Sixth. Because, as has been shown, $1,167,000 was 
taken during the past eight fiscal years, from the 
proceeds of taxation, to make good the capital and 
revenue ot the school fund. If the amendment 
submitted is adopted no such items will appear in 
the tax levies of the next eight years. Again, the 
annual contributions from the revenue of the 
United States Deposit Fund to the capital of 
the school fund, amounting, in eight years, to 
$200,000, would also be available to lighten taxa- 
tion. These two items aggregate, 1,367, 000 

It is, therefore, easily possible to reduce the aggre- 
gate of taxation during the next eight fiscal years, 
as compared with that of the eight last preceding, 
by the surprising sum of $20,217, OOO 



This is an average reduction of $2,527,000 for each year. The 
average amount raised by direct taxation during the past eight 
years was $7,942,000. The average amount, therefore, of such 
taxation during the eight next fiscal years should not exceed 
$5,415,000, which is less than any tax levy since 1859. Upon the 
present valuation this amount would ensure to the people an 
average annual tax rate of not more than one and eight-tenths mills 
for the eight years under consideration, being lower than the rate 
ot any year since 1856. 

The proposition involves an amendment of the Constitution — a 
proposed form of which is herewith submitted. Should your 
Honorable Body see fit to pass the same, the fact that a new Legis- 
lature will be chosen this fall makes it possible to submit the 
amendment to the people in November, 1886. Your Honorable 



12 

Body and the Legislature of 1SS6 can, by judiciously remitting to 
the people the cash surplus now in the possession of the State, and 
by availing yourselves of other favoring conditions of the time, at 
once reduce the tax rate to less than two mills, that is, to a lower 
point than has been known since 1856. 

But the chief merit of the proposition will be found in the fact 
that it does not eflect a mere temporary and casual lightening of 
the popular burden. It ensures a prolonged and an increasing 
freedom from heavy demands upon the taxpayer until a 
date at which our State will find itself with no debt, and with no 
consuming project to bewilder financiers, to debauch the minds of 
workingmen and to infuriate plain citizens. Before that date arrives 
it will be possible, in the clear light of the future, to develop 
new methods of raising revenues. These new methods, coupled 
with the Corporation Tax Law now established, supported 
by a population of 6,000,000 of souls and by a valuation of four 
thousand millions of dollars, as they are sure to be, will place the 
burden of taxation upon those who are able to bear them and who 
also are able to distribute them. That such methods can be 
devised in a mmnent is not to be expected. It is, however, in the 
power of your Honorable Body to prepare the way for them by 
broad, intelligent, far-sighted public policy. 

ALFRED C. CHAPIN, 

Comjptroller . 



13 



Table A. 

COMMON SCHOOL FUND FROM 1805 TO 1845. 

The following table exhibits the School Fund, according to the annnal reports 
of the Comptroller, from the formation of the fund in 1805-6 to 1845 ; also the 
annual interest or revenue derived from the fund, and the amount annually 
apportioned from the State Treasury : 



YEAR. 



Capital. 



Anonal revenue 
or iuterest. 



Sum annually 

paid from 
Slate Treasury. 



1805. 
1806. 
1807. 
1808. 
1809. 
1010. 
1811. 
1813. 
1813. 
1814. 
1815. 
1816. 
1817. 
1818. 
1819. 
1820. 
1831. 
1833. 
1823. 
1824. 
1835. 
1826. 
1837. 
1828. 
1829. 
1830. 
1881. 
1882. 
1833. 
1834. 
1835. 
1836. 
1837. 
1838. 
1839. 
1840. 
1841. 
1843. 
1843. 
1844. 
1845. 



$58,757 24 

183.163 96 

807.164 56 
390,687 15 
428,177 ill 

483.826 29 
558,464 69 
036,758 07 
833,064 94 
861,457 89 
934,015 13 
982,343 26 
971,861 31 
108,949 09 
329,076 00 
315,526 00 
152,630 57 

155.827 40 
172,918 38 
288,309 47 
319,886 -36 
853,477 64 
611,096 80 
684,(138 80 
661,081 24 
696,748 66 
704,159 40 
735,175 28 
754,046 84 
791,821 77 
875,191 71 
917,494 17 
919,647 08 
929,707 51 
933,431 99 
088,807 95 
036,625 68 
968,290 72 
975,093 15 
993,1116 35 
090,632 41 



Not stated. 

Not stated. 

Not stated. 

Not stated. 

$24,115 46 

26,480 77 

36,437 64 

45,216 95 

47,612 16 

57,248 39 

57,539 88 

64,058 01 

69,555 39 

68,770 00 

70,550 04 

78,944 56 

77,144 56 

77,417 86 

72,515 09 

75,815 05 

81,815 41 

86,429 98 

81,381 90 

89,084 96 

94,626 35 

100,678 60 

80,043 86 

93,755 31 

109,117 77 

104,390 78 

184,016 40 

118,486 67 

94,349 98 

103,994 09 

117,473 37 

103,400 65 

96,073 85 

90,092 46 

107,370 62 

133,836 51 

113,458 87 



No distribu- 
tion to be 
made until 
the revenue 
amounts to 
$50,00«. 



!{ 60,000 00 

60,000 00 

60,000 00 

60,000 00 

70,000 00 

80,000 00 

80,000 00 

80,000 00 

80,000 00 

80,000 00 

80,000 00 

100,000 00 

100,000 00 

100,000 00 

100,000 00 

100,0(0 00 

100,080 00 

100,080 00 

100,080 00 

100,0(.0 00 

100,000 00 

110,000 00 

110,000 00 

110,000 00 

110,00»» 00 

110,000 00 

110,080 00 

110,080 00 

110,080 00 

110,080 00 



$^,081,719 80 



$2,780,560 00 



14 



Table B. 

SCHOOL FUND FROM 1846 TO 1885, INCLUSIVE. 

The following table exhibits the School Fund, from the year 1846 to 1885 
also the annual interest or revenue derived from the fund, and the amount 
annually paid from the State Treasury each year, from fund and tax : 



YEAR ENDING 
SEPTEMBER 30. 



1846 
1847 
1848 
1849 
1850 
1851 
1852 
1853 
1854 
1855 
1856 
1857 
1858 
1859 
1860 
18(51 
1862 
1863 
1864 
1865 
1866 
1867 
1868 
1869 
1870 
1871 
1872 
1873 
1874 
1875 
1876 
1877 
1878 
1879 
1880 
1881 
1882 
1883 
1884 
1885 



Capital. 



$2 


133, 


2 


170, 


2 


211, 


2 


243, 


2 


290, 


2 


325, 


2 


354, 


2 


383, 


2 


425, 


2 


457, 


2 


491, 


2 


526, 


2 


551, 


2 


586, 


2 


607, 


2 


625, 


2 


658, 


2 


694, 


2 


734, 


2 


765, 


2 


799, 


2 


827, 


2 


853, 


2 


880, 


2 


915, 


2 


978, 


3 


004, 


3 


029, 


3 


054, 


3 


080, 


3 


105, 


3 


130, 


3 


156, 


3 


226, 


3 


251, 


3 


276, 


3 


802, 


3 


827, 


3 


852, 


*3 


877, 



943 01 
514 47 

475 14 
563 36 
673 23 
449 72 
530 09 

57 23 
211 97 
520 86 
916 14 
392 24 
260 52 
251 16 
036 68 

476 94 
116 42 
552 33 
213 15 
760 77 
630 04 
465 34 
396 40 
017 01 
633 04 
576 52 
513 55 
513 55 
772 10 
107 68 
107 68 
762 78 
062 78 
285 54 
285 54 
601 54 
901 54 
901 54 
901 54 
901 54 



Annual revenue 
or interest. 



$123 
131 
117 
119 
135 
132 
140 
146 
144 
143 
159 
169 
159 
164 
152 
153 
158 
157 
154 
186 
170 
183 
192 
164 
174 
175 
168 
175 
178 
179 
177 
199 
202 
188 
183 
178 
122 
147 
162 

*160 



458 12 
554 21 
220 25 
903 76 
792 10 

009 15 
295 42 

303 76 
116 97 
127 73 
849 17 
160 59 
544 28 
249 77 
992 82 

010 51 
656 18 
649 42 
882 30 
462 20 
580 65 
821 84 

006 92 
143 79 

007 31 
252 96 
603 49 
191 34 
813 72 

304 66 
687 36 
151 60 
122 62 
874 95 
674 58 
465 80 
142 21 
068 54 
564 49 
000 00 



5,433,717 54 



StTM Annually Paid from the 
State Treasury. 



From School 
Fund. 



1106 
110 
119 

79 
161 

76 
179 

95 
169 
145 
145 
185 
204 
160 
160 
182 
183 
167 
160 
161 
163 
178 
188 
214 
172 
174 
174 
120 
226 
175 
176 
177 
174 
202 
199 
178 
448 
513 
175 
*175 



073 81 
820 32 

902 00 
407 14 
030 06 
001 81 
242 09 
010 60 
961 40 
513 26 
638 98 
l';8 45 
864 00 
206 71 
071 05 
508 57 
977 54 
906 42 
485 76 
560 79 
142 58 
806 80 
550 28 
900 78 
520 39 
422 91 
268 98 
967 12 

903 96 
820 20 
744 77 
110 90 
974 22 
485 30 
955 84 
584 71 
798 21 
712 03 
793 81 
000 00 



$7,168,824 54 



From School 
Tax. 



800 
8«0 
800 
800 
072 
074 
053 
053 
064 
081 
086 
090 
125 
163 
148 
080 
207 
325 
458 
565 
610 
662 
711 
959 
082 
100 
927 
917 
802 
056 
062 
099 
180 



000 00 
000 00 
000 00 
000 00 
000 00 
362 83 
982 20 
680 74 
873 04 
473 14 

325 57 
977 96 
^41 11 
749 90 
159 76 
422 22 
134 65 
611 42 
150 96 
751 48 
672 37 
784 31 
032 98 
634 84 
725 13 
834 09 
207 86 

326 72 
147 10 
088 12 
633 67 
050 82 
165 66 
393 90 



$65,685,194 55 



* Estimated. 
Note — The payments from revenue for 1882 and 1883 include over $600,000 
for premiums and commissions on bonds purchased. 



15 



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16 

Table D. 

RECEIPTS FROM CORPORATION TAX. 

For fiscal year ending September 30, 1880 $141 ,127 03 

" 30,1881 992,725 16 

80, 188-i 1,539,684 27 

*' 30,1883 *1, 935, 179 31 

" 30,1884 1,603,612 75 

•• " 30, 1885 (estimated) 1,600,000 00 

Total $7,812,328 52 

This tax will protluce at least $1,600,000 per year, i. e., $12,800,000 during the 
next eight years. It will increase but graduiilly, as by far the larger part of it is 
drawn from a few great corporations, whose number and individual magnitude 
are not likely to be much augmented hereafter. 

« The receipts forl8S3 include over $350,000 lack taxes of 1880. 



Table E. 

APPROPRIATIONS FOR THE ERECTION OF THE NEW CAPITOL 
FOR EIGHT YEARS. 

Year 1877, chapter 336 $500,000 00 

" 1878, " 7 $300,000 00 

" 1878, " 252 'J 00, 000 00 

1,000,000 00 

1,000,000 00 

1,600,000 00 

1,000,000 00 

1,250,000 00 



1879, " 65 $500,000 00 

1879, " 272 500 1 000 00 



1880, " 33 $100,000 00 

1880, " 138 1,500,000 00 



1881, " 24 $250,000 00 

1881, " 325 750,000 00 



1882, '• 7 $250,000 00 

1882, " 295 1,000,000 00 

1883, " 9 $250,000 00 

1883, " 320 1,000,000 00 



1,250,000 00 
"1884, " 37 1,000,000 00 



Total. . . $8,600,000 00 



17 



Table F. 

APPROPRIATIONS FOR CANAL DEBT SINKING FUND. 

Year ending September 30, 1878 |!)00,208 50 

Year ending September 30, 1879 805,083 31 

Year ending September 30, 1880 789, 'i24 90 

Year ending September 30, 1881 878,!)38 03 

Year ending September 30, 1882 758,797 92 

Year ending September 30, 1883 I,115,(i48 46 

Year ending September 30, 1884 1,9^8,508 34 

Year ending September 30, 1885 950,;il0 00 



$8,187,219 46 



Table G. 

There will be needed for the Canal Debt Sinking 
fiscal years, as follows : 



Fund for the next eight 





Interest. 


Sinking Fund. 


Total. 


Year ending Sept. 30, 1886 . . 


$500,310 00 


$330,000 00 


• 

$830,310 00 


Year ending Sept. 30, 1887 . . 


476,866 50 


330,000 00 


806,866 50 


Year ending Sept. 30, 1888 . . 


406,5:^6 00 


330,000 00 


736,536 00 


Year ending Hept. 30, 1889 . . 


406,536 00 


330,000 00 


736,536 00 


Year ending Sept. 30, 1890 . . 


406,536 00 


330,000 00 


736,536 00 


Year ending Sept. 30, 1891 . . 


341,997 00 


330,000 00 


671,997 00 


Year ending Sept. 3o, 1892 . . 


148,380 00 


330.000 00 


478,380 00 


Year ending Sept. 30, 1893 . . 


28,380 00 


330,000 00 


358,380 00 




$2,715,541 50 


$2,640,000 00 


$5,855,541 50 



The securities and ca&h in the fund will earn interest which cannot now be 
exactly computed. It is safe, therefore, to estimate that the total taxation caused 
by this fund in the next eight years will M\ $3,000,000 below that of the eight 
years just closing. 

2 



18 



CONCURRENT RESOLUTION 

Proposing an Amendment to Section One of Article Nine of 

THE Constitution, Relating to the Capital and 

Revenue of certain Trust Funds. 



Resolved (if the Senate concur), That section one of article nine of the Consti- 
tution be amended so as to read as follows : 

Section 1. The capital of the Literature Fund and the capital of the United 
States Deposit Fund shall be respectively preserved inviolate. The revenue of 
the said Literature Fund shall be applied to the support of academies. So soon 
after January first, in the year one thousand eight hundred and eighty-seven, as 
good judgment may dictate, the Comptroller shall convert the capital of the 
Common School Fund into cash, which shall be paid into the Treasury, and be 
applied in reduction of direct taxation. 



LIBRARY OF CONGRESS 

t1lll!IIIIIIIIIIH:!ll'l'flll' 



021 504 235 2 



HoUiE 

p] 



LIBRARY OF CONGRESS 




021 504 235 2 # 



Hollinger Corp. 
._ . ^u ft n. 



